Who is an Investment banker?
- An Invsetment banker is an individual who works as the part of co-operate finance who performs wide range of finance oriented operations.
- Their primary job is to raise funds for co-operates, governments and other institutions.
- Investment banker is recommended for those who are good at risk assessment and valuation.
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Qualifications required to become an Investment banker
- You need to complete your graduation from commerce background.
- It is not a requirement but you will get an advantage.
- Bachelor’s degrees in finance, accounting, or mathematics will give you an advantage but other fields like computer science or physics also work well.
- After completing your graduation you need to do some specialization like Chartered Accountant (CA), Chartered Financial Analyst (CFA) and MBA.
What are skills required?
- Strong in Quantitative Aptitude: You need to be very strong in Math. It is the numerical ability of an individual to evaluate things in a technical or non-technical manner. You need to also have analytical skills to analyze data.
- Proficiency in Excel: It is one of the most important analytical tools. In Investment banking you need to make several financial models or do valuation. You should know the important shortcuts to be efficient at your work.
- Presentation and communication skill: Presentation includes spreadsheet, documents and slideshow. You need to convince your customer regarding your ideas. For this, you need to have good interpersonal skills.
- Time management skill: Investment banker is a high-pressure job where your deadlines are very crucial. You should have the ability to multitask.
Hierarchy of Investment banks and their functions
- Investment Banking Analyst: After completing your degree, you will enter as an Analyst in Investment banks. Analyst joins the co-operates finance as a fresher. Their job is to build a financial model in Excel. They also develop a presentation to share the ideas related to a particular project. The working period as an Analyst is between two to three years.
- Investment Banking Associate: After working as an Analyst you are promoted to Associate rank. You keep working on creating financial models and presentation. Apart from this, they monitor and gives feedback to an Analyst. They also talk to their client and act as an intermediate between Analyst and Vice president. The working period of an Associate is between three to four years.
- Vice President: After working as an Associate you are promoted to Vice President rank. Vice president ensure that financial models and presentation are built in the right way. You will have an active roll in executing any deal with clients. The working period for Vice President is not fixed.
- Director: They act as an intermediate level between the Managing Director and Vice Presidents. It depends upon the bank whether to have a Director after a Vice President or Managing Director. Sometimes Director is also called with another name as Senior Vice President.
- Managing Director: They are at the top of the investment banking hierarchy. Their main role is to talk to the client, meet them and increase the business of the bank. They act as an interface between the client and rest of the team.